Political behavior does not (always) undermine strategic decision making: Theory and evidence

Political behavior pervades strategic decision-making, often damaging decision quality and undermining organizational performance. However, little is currently known about how top management teams (TMTs) cope with such behavior. To address this shortfall, we draw on the upper echelons literature to...

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Published in:Long range planning Vol. 53; no. 5; p. 101943
Main Authors: Shepherd, Neil Gareth, Hodgkinson, Gerard P., Mooi, Erik A., Elbanna, Said, Rudd, John Maynard
Format: Journal Article
Language:English
Published: Elsevier Ltd 01.10.2020
Elsevier Science Publishers
Subjects:
Analysis
Behavioral strategy
Business schools
Cognition
Decision-making
Political behavior
Strategic decision-making
Top management teams
Upper echelons
Top management teams
Cognition
Political behavior
Upper echelons
Strategic decision-making
Behavioral strategy
ISSN:0024-6301, 1873-1872
Online Access:Get full text
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Abstract Political behavior pervades strategic decision-making, often damaging decision quality and undermining organizational performance. However, little is currently known about how top management teams (TMTs) cope with such behavior. To address this shortfall, we draw on the upper echelons literature to advance a contingent account of the factors that differentiate well-functioning and dysfunctional TMTs. Focusing on the psychological context surrounding the TMT, we theorize that cognitive consensus, power decentralization, and behavioral integration are key generative mechanisms that enable TMTs to countermand the potentially deleterious consequences of political behavior. We corroborate our theorizing using a field study of 117 strategic decisions, drawn from multiple TMT informants and secondary databases. Confirming the majority of our hypotheses, our findings indicate that behaviorally integrated and decentralized TMTs are better equipped to attenuate the potentially damaging effects of organizational politics, thereby safeguarding the quality of their decision processes.
AbstractList Political behavior pervades strategic decision-making, often damaging decision quality and undermining organizational performance. However, little is currently known about how top management teams (TMTs) cope with such behavior. To address this shortfall, we draw on the upper echelons literature to advance a contingent account of the factors that differentiate well-functioning and dysfunctional TMTs. Focusing on the psychological context surrounding the TMT, we theorize that cognitive consensus, power decentralization, and behavioral integration are key generative mechanisms that enable TMTs to countermand the potentially deleterious consequences of political behavior. We corroborate our theorizing using a field study of 117 strategic decisions, drawn from multiple TMT informants and secondary databases. Confirming the majority of our hypotheses, our findings indicate that behaviorally integrated and decentralized TMTs are better equipped to attenuate the potentially damaging effects of organizational politics, thereby safeguarding the quality of their decision processes.
ArticleNumber 101943
Audience Trade
Author Rudd, John Maynard
Shepherd, Neil Gareth
Hodgkinson, Gerard P.
Mooi, Erik A.
Elbanna, Said
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  givenname: Gerard P.
  surname: Hodgkinson
  fullname: Hodgkinson, Gerard P.
  organization: Alliance Manchester Business School, The University of Manchester, UK
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  surname: Mooi
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  organization: The University of Melbourne, Australia
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  surname: Elbanna
  fullname: Elbanna, Said
  organization: College of Business and Economics, Qatar University, Qatar
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  givenname: John Maynard
  surname: Rudd
  fullname: Rudd, John Maynard
  organization: Warwick Business School, The University of Warwick, UK
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Political behavior
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Behavioral strategy
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Snippet Political behavior pervades strategic decision-making, often damaging decision quality and undermining organizational performance. However, little is currently...
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SubjectTerms Analysis
Behavioral strategy
Business schools
Cognition
Decision-making
Political behavior
Strategic decision-making
Top management teams
Upper echelons
Title Political behavior does not (always) undermine strategic decision making: Theory and evidence
URI https://dx.doi.org/10.1016/j.lrp.2019.101943
Volume 53
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